In a recent development, ARK Bitcoin ETF (ARKB) asset managers, 21Shares and Ark Investment, have teamed up with the decentralized oracle network Chainlink to establish a “new standard” for transparency and security in tokenized assets.
Chainlink’s PoR to Validate ARKB Bitcoin ETF Reserves
The key driver behind this partnership is the integration of Chainlink’s Proof of Reserve (PoR) solution. This technology provides a secure and transparent method for verifying the Bitcoin reserves supporting the ARKB ETF. Announced on Monday, the collaboration will utilize Chainlink’s PoR to automatically update the on-chain reference contract with the total value of ARKB’s Bitcoin holdings by accessing data feeds directly from Coinbase.
Johann Eid, Chief Business Officer at Chainlink Labs, commented: “We’re thrilled to work with 21Shares as they redefine the interaction with tokenized assets and broaden accessibility. Chainlink Proof of Reserve offers real-time, tamper-proof data on Bitcoin reserves, enhancing the security and transparency of the ARK 21Shares Bitcoin ETF and empowering institutions and market participants to engage confidently with on-chain finance.”
Enhanced Transparency and Security
The announcement highlighted several benefits of this integration. Firstly, ARKB ETF investors will receive “frequent updates” on the collateralization of the underlying Bitcoin holdings, eliminating the need for manual verification. Additionally, Chainlink’s oracle network is expected to bolster the reliability and resilience of the Proof of Reserve data. By removing central points of failure, the system aims to provide trusted on-chain updates consistently, thus enhancing overall security for the ARKB Bitcoin ETF.
Related reading: Cantor Fitzgerald Eyes Major Bitcoin Financing Business, $2B Initial Capital To Fuel Growth
One of the most significant advantages is the increased transparency Chainlink’s Proof of Reserve brings, allowing investors to independently verify the asset collateralization of the ARKB ETF. Ophelia Snyder, co-founder and president of 21Shares US, stated: “By integrating Chainlink, the leading provider of Proof of Reserves for tokenized assets, we are setting a new benchmark for transparency and security in digital asset management. This partnership enables us to deliver unparalleled insight and safety for our ARKB investors, underscoring 21Shares’ dedication to pioneering secure and transparent asset management.”
As of now, Bitcoin, the largest cryptocurrency by market cap, is trading at $67,960, having recently retreated from a one-month high of $70,000 reached earlier in the trading session on Monday.
David Ma was born in 1980 in California, is a Vietnamese American, known as one of the entrepreneurs and investors in the field of cryptocurrency and stock market. In 2006, he graduated from Stanford University with honors and began his career in business.
Email: [email protected]
